Government Initiatives in rural Marketing Kisan Credit Cards issued by National Bank for Rural Development (Nabard)is playing and bringing drastic change in the villages i.e. social up-liftment by economic empowerment. The Kisan Credit Cards scheme of Nabard is becoming an effective tool to fight the existence of sahukars and other informal sources of credit for farmers. During 2008-09, the number of KCC issued by these banks was almost 16,000 and cumulative term loan issued was Rs, 587cr. KCC aims at meeting the entire credit needs of farmers through a whole farm approach. It covers farmers production, investment and consumption needs. Under KCC scheme, the credit is available at a rate of 7 percent. All farmers, including oral lessees, tenant farmers, and share croppers, can avail credit facilities under KCC. Under the KCC scheme, any number of withdrawals and payments within the sanctioned credit limit are allowed to the borrower. The card is valid for 3/5 years subjects to annual review by the financing bank. KCC also covers personal accident insurance cover up to Rs. 50,000 to cover accidental death / permanent disability.

NREGA , an employment generation scheme is likely to earmark Rs.30,000 crores for the scheme in FY 09. The government ensuring employment to 4.47 crore families and creating 215 crores person days during the past three years are big achievements for the rural people. The projects worth 27 lakhs, have already been taken up, out of which projects worth 12 lakhs, are completed.

These projects have also increased rural income and have become a big factor for the companies to rush for the rural call. NREGA has also injected confidence in the rural people.

The opening of bank account is making many rural poor confident. They are saving money now. Also, the life insurance and health insurance products have gained ground among them.

Role of Agricultural marketing agencies Central Govt organizations are involved in agricultural marketing.

Commission for Agricultural on costs and prices(decides minimum support price for certain crops)

Food corporation of India(FCI) and Jute Corporation of India(JCI)

There are specialized marketing boards for rubber, coffee, tea, spices which coordinate the marketing of produce in their respective area.

FCI is the sole repository of food grains reserved for public distribution system(PDS).

FCI has functioned effectively in providing price supports to farmers through its procurement scheme.

Regulated MarketRegulated markets have been organized with a view to protect the farmers from the malpractices of sellers and brokers. The management of such markets is done by a market committee which has nominees of the State Government, local bodies, arhatiyas, brokers and farmers. Thus all interests are represented on the committee. These committees are appointed by the Government for a specified period of time. Important functions performed by the committees can be summarized as follows.

fixation of charges for weighing, brokerages etc.,prevention of unauthorized deductions, underhand dealings, and wrong practices by the arhatiyas,enforcing the use of standardized weights, providing up to date and reliable market information to the farmers, and settling of disputes among the parties arising out of market operations. The system of regulated markets has been found to be very useful in removing fraudulent practices followed by brokers and commission agents and in standardizing market practices.

Cooperative Marketing InstitutionsCooperative Marketing Institutions perform the role of institutional agencies which strive for achieving social cohesion by providing opportunity for sustainable development at the bottom of the pyramid, through the cooperation amongst members.Types of Cooperative Societies- 1. Agricultural Credit Cooperatives- Rural credit societies provide loans for agricultural purposes. They provide farmers requirements either for cash against approved credit limits.2. Agricultural Marketing Societies-There are 16 state marketing societies, 2125 marketing unions and federation and 9240 primary marketing societies with a total turnover of about Rs 52 crore in the field of agricultural marketing.3. Non agricultural societies-In the non agricultural field significant success has been achieved in the formation of 5748 handloom weavers societies in 1953-54.

Significance of Cooperative Marketing InstitutionsHelps in organization of economic activity

Brings large and widespread gains to community

Avoids the exploitation of the interest of the lesser informed and lesser privileged unorganized individual from the exploitative design of the people.

AMULAmul is role model for other cooperative institution in dairy and non dairy sector. The success of this was replicated in other states of India and became the Operation Flood Programme and this movement finally made India the largest producer of milk.

NAFEDNational Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established on the auspicious day of Gandhi Jayanti on 2nd October 1958.

NAFED is registered under the Multi State Co-operative Societies Act.

NAFED was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers. Agricultural farmers are the main members of NAFED, who have the authority to say in the form of members of the General Body in the working of NAFED.

NAFEDTo organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-State, import and export trade, wholesale or retail as the case may be and to act and assist for technical advice in agricultural production for the promotion and the working of its members and cooperative marketing, processing and supply societies in India. In furtherance of these objectives, the NAFED may undertake one or more of the following activities :1. to facilitate, coordinate and promote the marketing and trading activities of the cooperative institutions in agricultural and other commodities, articles and goods;

to undertake or promote on its own or on behalf of its member Institutions or the Government or Government Organisations, Inter-State and international trade and commerce and undertake, wherever necessary, sale, purchase, import, export and distribution of agricultural commodities, horticultural and forest produce, other articles and goods from various sources for pursuing its business activities and to act as the agency for canalisation of export and import and interstate trade of agricultural and other commodities or articles under any scheme formulated by the Government of India or other Government agencies and to facilitate these activities, wherever necessary, to open branches/sub-offices and appoint agents at any place within the country or abroad.

NAFED3. to undertake purchase, sale and supply of agricultural products, marketing and processing requisites, such as manure, seeds, fertiliser, agricultural implements and machinery, packing machinery, construction requisites, processing machinery for agricultural commodities, forest produce, dairy, wool and other animal products; 4. to act as warehouseman under the Warehousing Act and own and construct its own godowns and cold storages; 5. to act as agent of any Government agency or cooperative institution, for the purchase, sale, storage and distribution of agricultural, horticultural, forest and animal husbandry produce, wool, agricultural requisites and other consumer goods; 6. to act as insurance agent and to undertake all such work which is incidental to the same; 7. to organise consultancy work in various fields for the benefit of the cooperative institutions in general and for its members in particular; 8. undertake manufacture of agricultural machinery and implements, processing, packing, etc. and other production requisites and consumer articles by setting up manufacturing units either directly or in collaboration or as a joint venture with any other agency, including import and distribution of spare-parts and components to up-keep of the machinery/implements;

NAFEDto set up storage units for storing various commodities and goods, by itself or in collaboration with any other agency in India or abroad; to maintain transport units of its own or in collaboration with any other organisation in India or abroad for movement of goods on land, sea, air etc.; to collaborate with any international agency or a foreign body for development of cooperative marketing, processing and other activities for mutual advantage in India or abroad; to undertake marketing research and dissemination of market intelligence; to subscribe to the share capital of other cooperative institutions as well as other public, joint and private sector enterprises if and when considered necessary for fulfilling the objectives of NAFED. to arrange for the training of employees of marketing/processing/supply cooperative societies; to maintain common cadres/pools of managerial/technical personnel required by the marketing/processing/supply cooperative societies; to establish processing units for processing of agricultural, horticultural and forest produce and wool;

NAFEDto undertake grading, packing and standardisation of agricultural produce and other articles; to acquire, take on lease or hire, lands, buildings, fixtures and vehicles and to sell, give on lease or hire them for the business of NAFED. to advance loans to its members and other cooperative institutions on the security of goods or otherwise; to guarantee loans or advances or give undertakings to any Society or Company in which the Federation has a shareholding or financial involvement as a promoter to be able to assist its development or expansion or for starting any industrial undertaking by such societies/companies; to guarantee loans or advances or give undertakings on behalf of any such society or company as mentioned above to any financing institutions: to do all such things or undertake such other business or activities as may be incidental or conducive to the attainment of any or all of the above objects.

MARKFEDAsia's largest marketing cooperative. Punjab Markfed is a marketing federation of over three thousand societies. With a turnover of over 2 billion USD, Markfed has won recognition and many awards from the Government of India in various fields of excellence. Representing the interests of over a million farmers in the State of Punjab, (India).

PDSPublic Distribution System (PDS) is an Indian food security system. Established by the Government of India under Ministry of Consumer Affairs, Food, and Public Distribution and managed jointly with state governments in India, it distributes subsidized food and non-food items to India's poor. Major commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a network of Public distribution shops (PDS) established in several states across the country. Food Corporation of India, a Government-owned corporation, procures, maintain and issue food grains to the state. Distribution of food grains to poor people throughout the country is managed by state governments. As of date there are about 4.99 lakh Fair Price Shops (FPS) across India.In terms of both coverage and public expenditure, it is considered to be the most important food security network. However, the food grains supplied by the ration shops are not enough to meet the consumption needs of the poor or are of inferior quality. The average level of consumption of PDS grains in India is only 1 kg per person / month.

NCDCActivities Funded by NCDCa) Marketing Margin Money assistance to Marketing Federations Strengthening share capital base of primary / district marketing societies Marketing (Fruit & Vegetable) Working Capital Finance

b) Processing Setting up of new Sugar factories (Investment Loan) / Modernisation and Expansion/Diversification of existing Sugar Factories (Investment loan + term loan)

Margin Money assistance to cooperative Spinning Mills / State Cooperative Cotton Federations / Share Capital participation in New Spinning Mills / Modernisation/ Expansion of Spinning Mills / Modernisation of Existing and Establishment of Modern Ginning & Pressing Units / Rehabilitation of Sick Spinning Mills / Cotton Development Programmes

NCDC-National Cooperative Development CorporationOther Processing Units: Food Grains / Oilseeds / Plantation Crops / Cotton Ginning and Pressing / Fruit & Vegetable / Maize Starch / Particle Board, etc.Power Loom Cooperatives covering pre and post loom facilities

c) Cooperative StorageConstruction of godowns (Normal)Upgradation/renovation of existing godownsConstruction of Cold Storages / Upgradation/ Rehabilitation of Cold storages

d) Distribution of essential articles through cooperatives

Rural Employment Generation ProgrammesMNREGA- Breakthrough innovation in Govt scheme. The scheme is designed to be inherently customizable. Launched in 2006, MNREGA is the flagship livelihood programme operational through out the country. The objective is to guarantee a minimum income for economically weak rural households.SWARNJAYANTI GRAM SWAROZGAR YOJNA- Launched in April 1999 as a self employment programme for the rural poor. The objective of the SGSY is to bring the swarozgaris above the poverty line by providing them with income generating assets thru bank credit.PRADHAN MANTRI ROJGAR YOJNA- Launched in 1993 for providing self employment to educated unemployed youth from economically weaker sections.